AI
| Followers | 842 |
| Posts | 122793 |
| Boards Moderated | 10 |
| Alias Born | 09/05/2002 |
Monday, January 31, 2011 1:05:57 PM
HES Reports 4Q10 Results
[The Sabia-1 Brazil well mentioned in #msg-58627055 came up dry after all. (Strictly speaking, the well has “non-commercial” quantities of hydrocarbons.) As a result, HES wrote off its 40% pro rata investment in not only in the Sabia-1 well, but also the Azulão well drilled in 2009 that was thought at the time to be a success. On today’s 4Q10 CC, XOM said that analysis is continuing on the BM-S-22 block despite the fact that two of the three wells (Sabia-1 and Guarani) were failures. However, I think it’s fair to say that HES no longer has any value from this block baked into its share price.
Coincident with the release of 4Q10 results, HES announced that Hovensa (a 50/50JV of HES and Venezuela) permanently closed the older portion of its refinery in the US Virgin Islands, which is expected to stem the operating losses at this facility. HES booked a $289M non-cash charge in 4Q10 for this action.
Operationally, HES had another solid quarter. Non-GAAP EPS was $1.20 and production rose slightly to 420K boe/d. About 10% of production now comes from the Bakken shale (#msg-56999808, #msg-52712534, #msg-56596659); this will grow to 15% in a few years and eventually reach 20%, according to the company’s plans. As noted in #msg-56595927, only 9% of HES’ overall production is exposed to the Henry Hub price for NG., which gives HES a lot of leverage to the price of oil.
Please see actual PR for 4Q10 financial tables and see #msg-58564149 for HES’ 2011 cap-ex budget.]
http://finance.yahoo.com/news/Hess-Reports-Estimated-bw-2246465005.html?x=0&.v=1
›Fourth Quarter Highlights:
• Net income was $58 million compared with $358 million in the fourth quarter 2009
• Items affecting comparability include an after-tax charge of $289 million relating to the impairment of our equity investment in HOVENSA L.L.C.
• Capital and exploratory expenditures, including acquisitions, were $2,464 million, compared with $992 million in the fourth quarter 2009
• Oil and gas production was 420,000 barrels per day, an increase from 415,000 in the fourth quarter 2009
• Year end total proved reserves were 1,537 million barrels; reserve replacement for 2010 was 176 percent
January 26, 2011, 7:09 am EST
NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE:HES) reported net income of $58 million for the fourth quarter of 2010 compared with net income of $358 million for the fourth quarter of 2009. The after-tax income (loss) by major operating activity was as follows:
Note: See the following page for a table of items affecting the comparability of earnings between periods.
Exploration and Production earnings were $420 million in the fourth quarter of 2010 compared with $494 million in the fourth quarter of 2009. Fourth quarter 2010 results included higher exploration expenses reflecting dry hole costs of $111 million ($72 million after-tax) associated with two exploration wells (Sabia and Azulão) located on Block BM-S-22 offshore Brazil [see comments in the prologue of this post].
Fourth quarter oil and gas production was 420,000 barrels of oil equivalent per day, up from 415,000 barrels of oil equivalent per day in the fourth quarter a year ago. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $71.73 per barrel, an increase from $63.74 per barrel in the fourth quarter of 2009. The average worldwide natural gas selling price was $5.30 per Mcf in the fourth quarter of 2010 compared with $5.19 per Mcf in the same quarter a year ago.
Oil and gas proved reserves were 1,537 million barrels of oil equivalent at the end of 2010, compared to 1,437 million barrels at the end of 2009. During 2010, the Corporation added 274 million barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 176 percent of the Corporation’s 2010 production, resulting in a reserve life of 9.9 years.
Marketing and Refining results were a loss of $261 million in the fourth quarter of 2010 compared with income of $17 million in the same period of 2009. Refining operations incurred a loss of $308 million in the fourth quarter of 2010, including the impairment charge discussed below, and a loss of $40 million in the fourth quarter a year ago. Marketing earnings were $37 million compared with $45 million in the same quarter of 2009. Trading activities generated income of $10 million in the fourth quarter of 2010 and $12 million in the fourth quarter of last year.
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods (in millions):
Fourth quarter 2010 results included an after-tax charge of $51 million related to dry hole costs associated with the Azulão exploration well located offshore Brazil, which was drilled in 2009. The results also included an after-tax charge of $289 million to reduce the carrying value of the Corporation’s equity investment in HOVENSA L.L.C. [due to the permanent shutdown of the older portion of the refining operation, reducing the capacity from 500K to 350K bbl/d].
Net cash provided by operating activities was $1,478 million in the fourth quarter of 2010, compared with $1,271 million in the same quarter of 2009. Capital and exploratory expenditures were $2,464 million, of which $2,438 million related to Exploration and Production operations including $1,067 million for the acquisition of 167,000 net acres in the Bakken oil play in North Dakota from TRZ Energy, LLC. Capital and exploratory expenditures for the fourth quarter of 2009 were $992 million, of which $957 million related to Exploration and Production operations.
At December 31, 2010, cash and cash equivalents totaled $1,608 million compared with $1,362 million at December 31, 2009. Total debt was $5,583 million at December 31, 2010 and $4,467 million at December 31, 2009. The Corporation’s debt to capitalization ratio at December 31, 2010 was 24.9 percent compared with 24.8 percent at the end of 2009.
Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details on the event, refer to the Investor Relations section of our website at www.hess.com.‹
[The Sabia-1 Brazil well mentioned in #msg-58627055 came up dry after all. (Strictly speaking, the well has “non-commercial” quantities of hydrocarbons.) As a result, HES wrote off its 40% pro rata investment in not only in the Sabia-1 well, but also the Azulão well drilled in 2009 that was thought at the time to be a success. On today’s 4Q10 CC, XOM said that analysis is continuing on the BM-S-22 block despite the fact that two of the three wells (Sabia-1 and Guarani) were failures. However, I think it’s fair to say that HES no longer has any value from this block baked into its share price.
Coincident with the release of 4Q10 results, HES announced that Hovensa (a 50/50JV of HES and Venezuela) permanently closed the older portion of its refinery in the US Virgin Islands, which is expected to stem the operating losses at this facility. HES booked a $289M non-cash charge in 4Q10 for this action.
Operationally, HES had another solid quarter. Non-GAAP EPS was $1.20 and production rose slightly to 420K boe/d. About 10% of production now comes from the Bakken shale (#msg-56999808, #msg-52712534, #msg-56596659); this will grow to 15% in a few years and eventually reach 20%, according to the company’s plans. As noted in #msg-56595927, only 9% of HES’ overall production is exposed to the Henry Hub price for NG., which gives HES a lot of leverage to the price of oil.
Please see actual PR for 4Q10 financial tables and see #msg-58564149 for HES’ 2011 cap-ex budget.]
http://finance.yahoo.com/news/Hess-Reports-Estimated-bw-2246465005.html?x=0&.v=1
›Fourth Quarter Highlights:
• Net income was $58 million compared with $358 million in the fourth quarter 2009
• Items affecting comparability include an after-tax charge of $289 million relating to the impairment of our equity investment in HOVENSA L.L.C.
• Capital and exploratory expenditures, including acquisitions, were $2,464 million, compared with $992 million in the fourth quarter 2009
• Oil and gas production was 420,000 barrels per day, an increase from 415,000 in the fourth quarter 2009
• Year end total proved reserves were 1,537 million barrels; reserve replacement for 2010 was 176 percent
January 26, 2011, 7:09 am EST
NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE:HES) reported net income of $58 million for the fourth quarter of 2010 compared with net income of $358 million for the fourth quarter of 2009. The after-tax income (loss) by major operating activity was as follows:
Note: See the following page for a table of items affecting the comparability of earnings between periods.
Exploration and Production earnings were $420 million in the fourth quarter of 2010 compared with $494 million in the fourth quarter of 2009. Fourth quarter 2010 results included higher exploration expenses reflecting dry hole costs of $111 million ($72 million after-tax) associated with two exploration wells (Sabia and Azulão) located on Block BM-S-22 offshore Brazil [see comments in the prologue of this post].
Fourth quarter oil and gas production was 420,000 barrels of oil equivalent per day, up from 415,000 barrels of oil equivalent per day in the fourth quarter a year ago. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $71.73 per barrel, an increase from $63.74 per barrel in the fourth quarter of 2009. The average worldwide natural gas selling price was $5.30 per Mcf in the fourth quarter of 2010 compared with $5.19 per Mcf in the same quarter a year ago.
Oil and gas proved reserves were 1,537 million barrels of oil equivalent at the end of 2010, compared to 1,437 million barrels at the end of 2009. During 2010, the Corporation added 274 million barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 176 percent of the Corporation’s 2010 production, resulting in a reserve life of 9.9 years.
Marketing and Refining results were a loss of $261 million in the fourth quarter of 2010 compared with income of $17 million in the same period of 2009. Refining operations incurred a loss of $308 million in the fourth quarter of 2010, including the impairment charge discussed below, and a loss of $40 million in the fourth quarter a year ago. Marketing earnings were $37 million compared with $45 million in the same quarter of 2009. Trading activities generated income of $10 million in the fourth quarter of 2010 and $12 million in the fourth quarter of last year.
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods (in millions):
Fourth quarter 2010 results included an after-tax charge of $51 million related to dry hole costs associated with the Azulão exploration well located offshore Brazil, which was drilled in 2009. The results also included an after-tax charge of $289 million to reduce the carrying value of the Corporation’s equity investment in HOVENSA L.L.C. [due to the permanent shutdown of the older portion of the refining operation, reducing the capacity from 500K to 350K bbl/d].
Net cash provided by operating activities was $1,478 million in the fourth quarter of 2010, compared with $1,271 million in the same quarter of 2009. Capital and exploratory expenditures were $2,464 million, of which $2,438 million related to Exploration and Production operations including $1,067 million for the acquisition of 167,000 net acres in the Bakken oil play in North Dakota from TRZ Energy, LLC. Capital and exploratory expenditures for the fourth quarter of 2009 were $992 million, of which $957 million related to Exploration and Production operations.
At December 31, 2010, cash and cash equivalents totaled $1,608 million compared with $1,362 million at December 31, 2009. Total debt was $5,583 million at December 31, 2010 and $4,467 million at December 31, 2009. The Corporation’s debt to capitalization ratio at December 31, 2010 was 24.9 percent compared with 24.8 percent at the end of 2009.
Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details on the event, refer to the Investor Relations section of our website at www.hess.com.‹
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
Trade Smarter with Thousands
Leverage decades of market experience shared openly.
